The Commission for Regulation of Utilities (CRU) has published a new Financial Penalty Framework setting out how sanctions can be calculated where regulated energy companies are found to have engaged in improper conduct.
The framework applies to electricity and gas suppliers, network operators and interconnector operators.
Under existing legislation, the CRU can impose administrative sanctions, including financial penalties of up to 10% of a regulated entity’s turnover, subject to confirmation by the High Court.
When deciding on the level of a penalty, the regulator may take account of factors including the seriousness and duration of the conduct, its impact on customers, any financial benefit gained and steps taken by the company to address or mitigate the issue.
Examples of improper conduct can include providing inaccurate or misleading information, breaching customer-protection standards or engaging in conduct that may harm customers, particularly vulnerable customers.
The framework is intended to strengthen the CRU’s enforcement powers and act as a deterrent against breaches of regulatory obligations.
Minister for Energy Darragh O’Brien said the framework would support stronger protections for households and businesses and form part of a wider focus on energy affordability and customer protection.
The Government is also preparing a National Energy Affordability Action Plan, covering energy poverty, business energy costs, energy prices and demand management.
